TORONTO, Jan. 9, 2023
/CNW/ - Horizons ETFs Management (Canada) Inc. ("Horizons ETFs" or
the "Manager") is announcing the suspension of new
subscriptions to the Horizons USD Cash Maximizer ETF
("HSUV.U" or the "ETF"), effective at the close of
business today.
Launched on July 2, 2020, HSUV.U
seeks to generate modest capital growth by investing primarily in
high-interest U.S. dollar deposit accounts with Canadian banks.
While any decision to pay dividends or other distributions is
within the discretion of the Manager, HSUV.U has not made any
distributions since its inception, nor is it currently expected to
make any regular cash distributions. The value of any interest
earned is reflected in the net asset value ("NAV") of the
ETF.
The current assets under management ("AUM") of HSUV.U are
approximately US$775 million, which
is equivalent to more than $1 billion
Canadian dollars. At this AUM threshold, it is the Manager's view
that this suspension will help manage potential tax implications
and ensure that HSUV.U can continue to reinvest its distributions,
consistent with HSUV.U's current investment objectives.
As noted in HSUV.U's prospectus, if the ETF experiences a
significant increase in total NAV, the Manager may, in its sole
discretion and if determined to be in the best interests of
shareholders, decide to suspend subscriptions for new ETF shares if
considered necessary or desirable in order to manage potential tax
implications and/or to permit HSUV.U to achieve, or continue to
achieve, its investment objectives. It is the Manager's view that
the suspension will help manage potential tax implications and
ensure that HSUV.U can continue to reinvest distributions.
This suspension of subscriptions will not affect the ability of
existing shareholders of HSUV.U to sell their shares in the
secondary market at a price reflective of at least its NAV per
share, assuming normal course market conditions. However, investors
and potential investors should note that during a period of
suspended subscriptions, the Manager expects shares of HSUV.U to
trade at a premium to its NAV per share. While new subscriptions
are suspended, Horizons ETFs is strongly discouraging investors
from purchasing shares of HSUV.U.
Any subsequent resumption of subscriptions for HSUV.U will be
announced by press release and posted on the Manager's website.
For more information about HSUV.U, please visit:
www.HorizonsETFs.com/HSUV.U
About Horizons ETFs Management (Canada) Inc.
(www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. is an innovative financial
services company and offers one of the largest suites of exchange
traded funds in Canada. The
Horizons ETFs product family includes a broadly diversified range
of solutions for investors of all experience levels to meet their
investment objectives in a variety of market conditions. Horizons
ETFs has more than $23 billion of
assets under management and 107 ETFs listed on major Canadian stock
exchanges.
Commissions, management fees and expenses all may be
associated with an investment in the Horizons USD Cash Maximizer
("HSUV.U" and or the "ETF") managed by Horizons ETFs Management
(Canada) Inc. The ETF is not
guaranteed, its value changes frequently and past performance may
not be repeated. The prospectus contains important detailed
information about the ETF. Please read the prospectus
before investing.
HSUV.U uses cash accounts and do not track a traditional
benchmark but rather a compounding rate of interest paid on cash
deposits that can change over time. HSUV.U primarily invests in
bank deposit accounts and is not covered by the Canada Deposit
Insurance Corporation, Federal Deposit Insurance Corporation, or
any other government deposit insurer.
Any distributions which are received by HSUV.U are reflected
automatically in its net asset value (NAV). As a result, the
shareholders of HSUV.U are not expected to receive any taxable
distributions.
Certain statements may constitute a forward-looking
statement, including those identified by the expression "expect,
"anticipate" and similar expressions (including grammatical
variations thereof). The forward-looking statements are not
historical facts but reflect the author's current expectations
regarding future results or events. These forward-looking
statements are subject to a number of risks and uncertainties that
could cause actual results or events to differ materially from
current expectations. These and other factors should be considered
carefully and readers should not place undue reliance on such
forward-looking statements. These forward-looking statements are
made as of the date hereof and the authors do not undertake to
update any forward-looking statement that is contained herein,
whether as a result of new information, future events or otherwise,
unless required by applicable law.
SOURCE Horizons ETFs Management (Canada) Inc.